© Reuters
One of the final Flybe flights took off from Manchester Airport
Flybe has gone into administration after the regional airline struggled to raise funds, and bookings dropped off due to coronavirus.
One of Britain's largest airlines, Flybe entered administration just after 3am on Thursday, with all flights grounded and the business having ceased trading "with immediate effect".
It prompted pilots' union Balpa to accuse the government and the airline's owners of "betrayal and broken promises" - and questions about how vital regional transport links will be maintained.
Gallery: How the coronavirus is being handled globally (Photo Services)
People wearing face masks cross a road in Shanghai, China, on March 2.
A paramedic wearing a protective suit sanitizes the hands of people in Ashkelon, Israel, on March 2.
Personnel from the health ministry check tourists' temperatures and for any symptoms at the Rumichaca border bridge in Tulcán, Ecuador, on March 1.
A South Korean soldier wearing protective gear sanitizes a street in front of the city hall in Daegu on March 2.
Students of Hanoi National University of Education attend the first day of classes after returning to the university, which was closed for over a month due to the coronavirus outbreak, in Hanoi, Vietnam, on March 2.
U.S. President Donald Trump speaks during a news conference on the coronavirus outbreak as (L-R) U.S. Secretary of Health and Human Services Alex Azar, National Institute of Allergy and Infectious Diseases Director Anthony Fauci, U.S. Vice President Mike Pence, Director of the Centers for Disease Control and Prevention Robert Redfield and U.S. Surgeon General Jerome Adams look on, at the White House on Feb. 29.
Pedestrians wearing face masks cross a square in Tehran, Iran, on Feb. 29.
A police officer wears a protective face mask on the street in Mexico City, Mexico, on Feb. 29.
A member of the Iraqi security forces wears a protective face mask in Baghdad on Feb. 29.
A researcher works in a lab that is developing testing for the COVID-19 at the Hackensack Meridian Health Center for Discovery and Innovation in Nutley, New Jersey, U.S., on Feb 28. The facility develops novel therapies for some of the worlds most difficult diseases.
A health worker takes part in a drill to handle suspected carriers of coronavirus, at a hotel in Guatemala City, Guatemala, on Feb. 26.
Personnel wearing protective gear spray anti-septic solution at a traditional market in Seoul on Feb. 26.
Spanish police officers patrol outside the H10 Costa Adeje Palace hotel in Tenerife, Canary Island, Spain, on Feb. 25.
South Korean President Moon Jae-in talks during a special government meeting to discuss measures to prevent the further spread of COVID-19, at the Daegu City Hall in Daegu on Feb. 25.
Fans wear masks at Stadio San Paolo in Naples, Italy, on Feb. 25, prior to the UEFA Champions League round of 16 first leg match between SSC Napoli and FC Barcelona.
A newly wed couple wear protective masks as they take photos with family in Hong Kong on Feb. 24.
Two men ride a bike as they wear protective masks in Najaf, Iraq, on Feb. 24.
Bruce Aylward of the World Health Organization (WHO) attends a news conference on the WHO-China Joint Mission on coronavirus in Beijing, on Feb. 24.
U.N. Secretary General António Guterres speaks during an update on the situation at the WHO headquarters in Geneva, on Feb. 24.
A street vendor sells face masks outside a railway station in Milan, Italy, on Feb. 24.
Figures depicting coronavirus and "carnevals-virus" are seen at the Shrove Monday celebrations in Düsseldorf, Germany, on Feb. 24.
A reveler wears protective face mask at the Venice Carnival, the last days of which were called off after third death was reported in the country, in Italy on Feb. 23.
Media personnel chase after a passenger (C) who disembarked from the Diamond Princess cruise ship at the Daikoku Pier Cruise Terminal in Yokohama, on Feb. 19.
Indians who were airlifted from Wuhan wait to collect their release certificates before leaving the ITBP quarantine facility in New Delhi, India, on Feb. 17.
Military medics stand in a formation after deplaning from a transport aircraft of the People's Liberation Army Air Force (PLAAF) at the Tianhe International Airport in Wuhan, China, on Feb. 17.
A teacher gives a lecture with the help of her smart phone during an online class at a middle school in Donghai, China, on Feb. 17.
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Nepalese nationals who were in Wuhan walk out from a Nepal Airlines plane at Tribhuvan International Airport in Kathmandu, on Feb. 16. The chartered plane brought back 175 nationals from Hubei province.
A classroom is cleaned in preparation for students' return to school in Hanoi, Vietnam, on Feb. 15.
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An employee receives payment from a customer through a container on a stick, in Beijing on Feb. 12. A ramp has also been set up to deliver food from the counter.
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Members of the media stand near the cruise ship Diamond Princess, where dozens of passengers were tested positive for coronavirus, at Daikoku Pier Cruise Terminal in Yokohama on Feb. 11.
A Malaysian Royal Guard wears a protective mask as he stands guard outside National Palace in Kuala Lumpur, Malaysia, on Feb. 10.
Workers produce protective clothing at a factory in Wuxi, China, on Feb. 8. The factory, which previously produced suits and sportswear, switched to production of protective clothing as demand increased due to the ongoing coronavirus outbreak.
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Hong Kong Chief Executive Carrie Lam speaks to the media during a press conference on the coronavirus situation in Hong Kong on Feb. 8. Lam said that the government has bought 48 million masks and received 17 million more from China to counter the shortage of masks in Hong Kong.
South Korean Prime Minister Chung Sye-kyun has his temperature checked during a visit to a clinic in Gyeonggi, South Korea, on Feb. 8.
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Workers in protective gear are seen on Japan Coast Guard boats in Yokohama, on Feb. 5, bringing patients from the quarantined Diamond Princess cruise ship.
Beds are set up at an exhibition center, which was converted into a hospital, in Wuhan on Feb. 4.
This handout photo released by Malaysia's Ministry of Health shows citizens being directed onto a bus by health officials as they arrive at the Kuala Lumpur International Airport in Malaysia in Feb. 4.
Members of the Association for Sri Lanka and China Social and Cultural Cooperation (ASLCSCC) hold candles during a vigil to pray for people who are suffering from coronavirus across the world, in Colombo, Sri Lanka, on Feb. 1.
(L-R) Sabine Hagenauer of the infection department at the 4th medical department of Kaiser Franz Josef Hospital, Michael Binder, medical director of the Vienna Hospital Association, and Judith Aberle of the department of virology, Medical University Vienna, address a press conference at Kaiser-Franz-Josef hospital in Vienna, Austria, on Jan. 26. A Chinese flight attendant was quarantined in the hospital with symptoms of flu, in what authorities suspected as the first coronavirus case in the country.
Dozens of diggers work to build a new hospital in Wuhan, on Jan. 25. Due to the large number of infected people, the government decided to establish a temporary 1,000-bed hospital.
The GMB union warned that, in addition to Flybe's 2,400 staff, the collapse threatened 1,400 jobs in the supply chain and put the future of regional airports at risk.
Flybe had already come close to going under earlier this year - before last-ditch talks between the government and its owners secured a reprieve for the embattled carrier.
But since then, disagreements over the terms of a £100m taxpayer loan have cast a renewed shadow over its prospects - and a slide in bookings caused by the coronavirus outbreak was blamed for delivering a final blow from which it could not recover.
Hours before the official announcement of its collapse, Flybe boss Mark Anderson emailed the airline's staff to say it was "shortly being put into administration" - pointing to the impact of the outbreak.
© Other
Flybe announced it had gone into administration just after 3am on Thursday
Flybe was the largest independent airline in Europe, carrying about eight million passengers a year between 81 airports in the UK and Europe. It had operated, under various guises, for over 40 years.
Accountancy firm EY has been appointed to handle the administration process.
Alan Hudson, joint administrator, said: "Despite an agreement with the Government to provide assistance to the Company, added pressures on the travel industry in the last few weeks have further deepened the severity of its financial situation.
© Other
The Flybe website went down a few hours before it went into administration
"Flybe had already been impacted by rising fuel costs, currency volatility, and market uncertainty."
Passengers due to fly with the airline have been told to not travel to the airport unless an alternative flight with another airline has been booked.
"Flybe is unfortunately not able to arrange alternative flights for passengers," a message on the airline's former website said.
© Sky
About 2,400 staff have been left without jobs
Staff on Wednesday's final flights were said to be in tears ahead of the confirmation they had no jobs to go to a few hours later.
Transport secretary Grant Shapps said the government is "absolutely gutted, really".
"We really tried to do everything we could back at the turn of the year but unfortunately though, with the situation that's developed with coronavirus, an already weak company just hasn't been able to survive," he said.
He said the government has been speaking to regional airports around the UK and working with other airlines to "try to make sure we get those routes filled just as quickly as possible" after airports expressed concerns they would have few flights left without Flybe.
© Sky
Exeter Airport is Flybe's headquarters
Mr Shapps said the government has asked for assistance from travel, coach, train and airline companies to help stranded Flybe passengers.
He noted that while the collapse of Thomas Cook last September meant the UK's biggest ever peacetime repatriation, Flybe's routes are largely domestic and not many Flybe customers are abroad at this time of year. Those who are will be given assistance by other airlines, he said.
The airline was owned by Connect Airways, a consortium made up of US hedge fund Cyrus Capital, Virgin Atlantic and infrastructure group Stobart.
Stobart said in an update to investors hours after the collapse that Flybe had "shown promising signs of a turnaround" despite delays to European Commission clearance to Connect's takeover of the carrier last year.
"However, despite the best efforts of all, not least the Flybe people, the impact of COVID-19 on Flybe's trading means that the consortium can no longer commit to continued financial support," he said.
© Catalyst Images
CARDIFF, WALES - JANUARY 18: A Flybe Bombardier DHC-8 Q400 aircraft at Cardiff Airport on January 18, 2020 in Cardiff, United Kingdom. British airline Flybe, who account for 36% of UK domestic flights, have struck a deal with the UK government to defer tax payments and have received increased funding from owners Connect Airways. The UK government also agreed to conduct an urgent review of Air Passenger Duty on domestic flights. (Photo by Matthew Horwood/Getty Images)
Stobart said that over the past 14 months, Connect had invested more than £135m to keep the airline flying, including £25m of the £30m committed as part of its most recent rescue deal in January.
In the final hours of Wednesday, Flybe's website stopped working, just showing an error message which said the link is "no longer live".
Flybe planes at airports including Edinburgh were not being refuelled and engineers were being laid off.
The company had made a renewed plea for ministers to provide emergency financial support after the company's already fragile situation was made worse by a "collapse" in bookings due to coronavirus, one insider said.
Andy McDonald, Labour's shadow transport secretary, said the collapse was "disastrous" for passengers and employees and would cause "real anxiety".
"Flybe has provided critical connectivity for many locations throughout the country especially where there is currently no realistic transport alternative other than flying," he said.
© Catalyst Images
CARDIFF, WALES - JANUARY 19: A Flybe De Havilland Canada Dash 8-400 aircraft at Cardiff Airport on January 19, 2020 in Cardiff, United Kingdom. British airline Flybe, who account for 36% of UK domestic flights, have struck a deal with the UK government to defer tax payments and have received increased funding from owners Connect Airways. The UK government also agreed to conduct an urgent review of Air Passenger Duty on domestic flights. (Photo by Matthew Horwood/Getty Images)
"The government has to answer how those vital links will be maintained following Flybe's collapse."
Brian Strutton, general secretary of the British Airline Pilots Association (Balpa), said the airline's owners, who took over a year ago, and the government "connived to walk away" and accused other airlines of going "out of their way to push Flybe over the brink".
"Flybe staff will feel disgusted at this betrayal and these broken promises," he said.
"What happened to shareholders' promises of a bright future as 'Virgin Connect'? What happened to the government rescue deal?"
Oliver Richardson, national officer for union Unite, said its members "and the entire staff at Flybe" will be feeling angry and confused" about how the airline was allowed to collapse.
He said it was "outrageous" the government had not learnt from the collapse of Monarch and Thomas Cook.
Flybe boss Mr Anderson's letter warning staff added: "It's with enormous sadness and a deep feeling of sorrow that I share the upsetting news that Flybe is shortly being put into administration.
"Despite every effort, we now have no alternative - having failed to find a feasible solution to allow us to keep trading.
"While our shareholders and the leadership team have worked with the government and key suppliers to try to get the funding and support needed, this has not materialised.
"The coronavirus has impacted both our shareholders and ourselves and has put additional pressure on an already difficult situation.
"I am very sorry that we have not been able to secure the funding needed to continue to deliver our turnaround plan."
Mr Anderson, who had only been chief executive for eight months, apologised to staff, saying he appreciates "how distressing this news is and the shock and numbness that you will be feeling".
Flybe is said to have requested government support in recent days, to mitigate the impact of COVID-19.
But the crisis around the virus came after the company had already asked for a state loan, which appeared to have been rejected.
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